"GATT-think" with Asymmetric Countries
AbstractWe argue that a trade agreement which conforms to GATT's reciprocity rule benefits the (stronger) less trade-dependent country at the expense of the (weaker) more trade-dependent country. Reciprocity is so unfavorable to the weaker country that it may be worse off under reciprocity than under the Nash- bargaining solution, a "power-based" approach to trade negotiations that reflects power asymmetries among trading partners. Our results question Bagwell and Staiger's (1999 , 2000 ) view of reciprocity as a rule that "serves to mitigate the influence of power asymmetries on negotiated outcomes." Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 14 (2006)
Issue (Month): 3 (08)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576
Other versions of this item:
- Paolo Epifani & Juliette Vitaloni, 2003. "GATT-Think with Asymmetric Countries," Development Working Papers 175, Centro Studi Luca d\'Agliano, University of Milano.
- Paolo Epifani & Juliette Vitaloni, 2003. "‘GATT-Think’ with Asymmetric Countries," KITeS Working Papers 141, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Mar 2003.
- F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- F15 - International Economics - - Trade - - - Economic Integration
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